Improved operational performance of Royal FloraHolland at all locations
June 23, 2022
Logistics & transport
After a period of concerns about our operational performance, a significant improvement in delivery times has been realized at all locations in recent weeks. A more stable process has been running and our forecast of deliveries has been realized at all locations, which gives confidence. With that, the flowers and plants were delivered to our buyers according to the issued end times or sometimes even earlier. There is still room for improvement, such as reducing errors. Specifically for Naaldwijk, we have worked hard to improve predictability, stability and optimization. At the same time, finding personnel combined with a higher workload remains a challenge at all locations.
Due to a shortage of employees and more supply than expected, the pressure on our logistic operation at all locations was very high during the past period. At our location in Naaldwijk, where flowers have 100% switched to a new way of working, there were problems in delivery to our customers in week 23 and on Monday 13 June. This was mainly caused by IT problems and led to misunderstandings, frustrations and concerns. RFH understands that late or incorrect delivery of flowers and plants has major consequences throughout the chain. That feedback has reached us. There has been frequent contact with growers and buyers and RFH has kept all those affected informed of the performance on a more regular basis. Points of concern and suggestions that emerged from this are also being processed.
Unfortunately, the market situation and prospects for the sector are still worrying. This is caused, among other things, by the rising cost prices of raw materials, increases in energy prices due to the Ukraine situation, increased supply, more supply on the clock and lower demand from the market. Purchasing power and optimal pricing are on top of mind at all RFH locations on a daily basis, these affect the industry. Poor logistics performance does not help maintaining this. Developments are being closely monitored and RFH is doing everything possible to continue to achieve optimal pricing.
Continue to work on solutions
That is why we continue to work on solutions. Last week’s operational performances give hope for further improvement at all locations. RFH is doing everything possible to further improve operational performance and limit the impact on the processes of growers and buyers. The active recruitment of new colleagues is starting to bear fruit, although we are also dealing with outflow for various reasons.
At the same time, we are focusing on resolving the issues and further improving performance at all locations, with a specific approach for the logistics of Naaldwijk. It is important for the entire sector that growers can supply all locations with confidence, without worrying about the timely and correct delivery of auctioned product. Buyers must be able to count on their purchases being delivered on time and correctly. Predictability and reliability, that is what we are working on. After discussions with buyers, during a grandstand session among other things, the following points are on top on the agenda:
- In Search & Correction; ensuring fewer errors, reducing wait time and improving the service.
- Improve predictability and reliability of delivery.
- Improve quality of service; e.g. fewer errors, more even spreaded delivery.
- Improve inspection possibilities for buyers; products arranged less logically than before.
Improve product inspection possibilities
We recognize the problems that buyers face with inspecting products in the new logistics. Unfortunately, we cannot solve everything overnight. Together with the Naaldwijk location committee and other involved buyers, we are looking at ways to improve the inspection possibilities. The first proposals to improve this will be presented this month.
We work hard every day to deliver as many products as possible to our customers on time. We want to provide you with the service you have come to expect from us, without worries. Fortunately, we have managed to take some important steps. We expect our logistics performance to improve every week.